A lot of people with PTSD or DID survive with very little money. The key to a simple but manageable life on a tight budget is having a plan, actually writing a budget for the month. (Everyone should do this, but it is especially important with low income)
We will walk you through the steps of making a budget for yourself, using an example that represents disability in our country. It will help you to experience less fear when it comes to managing your finances every day.
Income
Start by writing down the amount of money that is coming in. If you are working, that is amazing, write it down. If you depend on social security, thank God it exists, write it down. If you have a side hustle of any kind, write it down. This is the number you will plan with. For our example we will use an income of 800.
Review spending
Take time to find out where your money is going. Observe your spending for 2-3 months and track what you are doing with your money. This can be eye-opening and you might see places where you can save. We keep an account page in our bullet journal to track our spending. Every time we pay for something we write it down. It is not a hard habit to learn. If you don’t like to do it on paper, get an app for it.
Plan your spending
Divide your costs into categories. For example:
- housing&co: rent, electricity, water, heating, garbage etc
- food&essentials: products you use up
- transportation: your car, including insurance/gas etc, public transportation
- clothing
- repairs/projects: saving money for when you need it
- media/connection: internet, cell phone, TV, netflix etc
- education: books, classes, etc
- contribution: giving helps you not to get depressed
- wild money: to spend on fun
You might have different ones eg therapy costs, insurances, cost for a pet etc. Don’t forget to add anual or quaterly payments.
Write down how much you pay for every category. For our example this could be
| Housing&co | 390 |
| Food& essentials | 180 |
| Transportation | 50 |
| Clothing | 30 |
| Repairs&investments | 30 |
| Media & connection | 50 |
| Education/culture | 30 |
| Contribution | 20 |
| Wild money | 20 |
| Summed up | 800 |
If you are spending more money than you get, you need to make cuts. You can find an article about safe ways to do that over here.
Every dollar should have an assigned purpose, even if it’s just assigned to „savings“ which means that the sum of your budget should equal your income.
Some of your costs are fixed costs, they always stay the same, like costs for housing or transportation. These will go into your budget unchanged every month.
The variable costs are places where you can be more flexible and move money around if needed. If you over-spend in one category you need to make sure to save it in another.
Some people find it helpful to manage variable costs by sorting cash into different envelops, one for each category. That way they can always see how much is left and it is easier to move money from one category to the other without losing track.
Assigning money to a certain category doesn’t mean that you have to spend it that month. Save your clothes money for warm boots and a coat. Save for repairs and to replace smaller items. Put money away for those annual payments.
Set priorities. Having a home, food and clothes is the most important. Don’t risk any of them by spending too much in other categories. Try to actually spend all your food money to make sure that you are investing enough into self-care.
Compare your budget to your core values. Do you invest in the things that are important to you? Even if it is just a small amount, this will help you not to get depressed while managing a tight budget.
Make a new budget every month. Your fixed costs will not change, but you will have more flexibility in how to manage the rest. A static budget will not be able to keep up with the reality of life. Consider birthdays, the sequel to your favorite movie coming out etc. During difficult months it is wise to plan for spending more on fun and self-care.
Try to create room for choices, even if they are small. Poverty limits choices. That is an incredibly harmful things for traumatized people to face day by day.
If you have DID, discuss the budget in a team meeting every month. Make room for individual wishes. Keep a list of those wishes. Some parts need more than others, but everyone should be able to get something every now and then.
Emergency fund
To live on a tight budget without constant fear of something breaking, you need to create an emergency fund. It should have enough money in it to replace your most expensive essential item with a used one. For some people that means a fund that could buy them an old car. For others it means being able to replace a washer, fridge or stove. Your emergency fund should not be touched unless a serious emergency occurs.
It is a weird observation that they seem to happen less often when an emergency fund is in place.
Avoid getting into dept. It is a trap. So is using credit cards, thinking you can postpone payments. Stay within your budget every month and you will be fine. If it is planned well if covers everything you need, so you don’t have to be afraid of not having enough. The longer you do this, the more stable your finances will be.
If you are dirt poor and you can’t cover your most essential costs, look for alternative ways to increase your income. Maybe you can create some kind of art and sell it. Don’t be too shy to let others fund you. Make use of the social security offered in your country. Ask churches and charities for help. Minimum financial safety is key to recovery from trauma.
DON’T, please don’t go back to your abusers for help. There are other people out there, billions of them. You cannot heal while you are dependant on the people who hurt you.
I hope that this will help you to set up a budget for yourself and overcome the fear and pressure that comes with poverty.
If you have questions, feel free to ask them in the comments below.
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